South Korea’s Hanwha Corporation and Hanwha Solutions Corporation, the largest shareholders of Norwegian polysilicon producer REC Silicon, announced a voluntary takeover bid to acquire all remaining shares at NOK 2.20 per share, valuing the deal at approximately NOK 925million (88.7 million). The proposal, which requires regulatory and shareholder approval, has already secured unanimous backing from REC Silicon’s board, which recommended acceptance to minority investors.
REC Silicon CEO Kurt Levens endorsed the offer, stating, “Hanwha has been a steadfast supporter through challenging times, and this deal aligns with our strategic interests and those of all stakeholders, including shareholders.” The transaction, if completed, would grant Hanwha full control of REC Silicon and delist the company from the Oslo Stock Exchange.
Ki Won Yang, CEO of Hanwha Solutions, emphasized the rationale: “Given REC Silicon’s prolonged financial struggles and strategic hurdles, Hanwha aims to stabilize operations post-delisting by providing robust financial support and streamlining governance.” The move follows Hanwha’s 2022 acquisition of a controlling stake in REC Silicon, which included plans to revive the company’s mothballed Moses Lake, Washington, polysilicon plant.
However, minority shareholders have condemned the offer as “grossly undervalued,” with some alleging the bid fails to reflect REC Silicon’s true asset value. A coalition of investors is reportedly weighing legal action to block the deal, arguing the price does not account for REC Silicon’s strategic assets, including its silane gas production capabilities and remaining intellectual property.
The dispute underscores REC Silicon’s turbulent history. The company halted operations at its Moses Lake facility in 2019 due to weak U.S. polysilicon demand and high production costs. Hanwha’s 2022 takeover, which included a 10-year offtake agreement for the plant’s fluidized bed reactor (FBR) polysilicon, initially sparked hopes for a revival. However, production was suspended in 2023 after the polysilicon failed Hanwha’s quality certification tests, prompting REC Silicon to pivot to silane gas manufacturing.
A shareholder vote on the takeover is scheduled for REC Silicon’s annual general meeting on June 24, 2025, though the company may convene an extraordinary meeting to expedite the process.
